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New Pacific rises on more high-grade silver results

New Pacific Metals (TSXV: NUAG) shares hit an 11-year high yesterday as the explorer announced more high-grade assays, including 93.5m at 336g/t silver, from its Silver Sand project in Bolivia.
New Pacific rises on more high-grade silver results New Pacific rises on more high-grade silver results New Pacific rises on more high-grade silver results New Pacific rises on more high-grade silver results New Pacific rises on more high-grade silver results

New Pacific has added a fourth rig to the 2019 drilling programme at Silver Sand in Bolivia

Staff reporter

The company has also added a fourth rig to its 2019 infill drilling programme and is aiming for an initial resource estimate by the end of the year.

New Pacific said all of the 20 latest holes continuously intercepted "significant wide silver mineralisation in fractures developed in bleached quartz sandstones".

The above-mentioned assay result was part of a wider 165.5m at 204g/t silver from 73.8m.

Other highlights included 4.5m at 1,140g/t from 66.5m; 140.71m at 109g/t from 38.29m; and 179.9m at 88g/t silver from 61.9m, including 0.75m mined out.

The company reported high recovery rates using simple extraction methods in metallurgical results last week.

New Pacific's progress comes as the silver price has surged over the past two months and is now at a two-year high, above US$18 an ounce on the spot market.

The junior lists Silvercorp Metals (TSX: SVM) and Pan American Silver (TSX: PAAS) as its major shareholders, with 28% and 16.8% respectively.

New Pacific raised C$19.95 million (US$15 million) after the pair exercised warrants in May, from a 2017 placement with an exercise price of $2.10.

Its share prices rose 14.6% yesterday to $2.99, a level last seen in mid-2008, to capitalise New Pacific about $426 million (US$320 million).